Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls

Across the nation, nearly every income group in every state has had its taxes cut in recent years. With new data from the Internal Revenue Service (IRS) on the taxes paid for 2004, we can now see the full effects of the so-called Bush tax cuts enacted in 2001 and 2003. Because states have different demographic profiles, some states’ taxpayers benefit more than others from the tax cuts.

Since the Bush tax cuts went into effect, a growing number of tax filers have been paying no federal income taxes. Millions who paid into the federal till each year before 2001 now get every dollar back that the federal government withheld from their paychecks during the year, and then some. This trend is well documented but frequently ignored by critics of the tax cuts.

Two changes in tax law have caused this explosion in the number of “non-payers”—tax returns that have zero or even negative federal income tax liability. They are the expansion of the child tax credit from $500 to $1,000 (complete in 2003) and the creation of the 10 percent taxable income bracket (complete in 2001).

Impact of Children on Number of Non-Payers Table 1 illustrates how these two policy changes have affected the taxpaying public in each state. Even though the percentage of taxpayers who pay no income taxes has grown in every state, the tax savings vary widely from state to state. States with a high number of children per family, such as Utah, saw larger increases in the fraction of tax returns that had no liability. In states (and the District of Columbia) where there are fewer children per family, most taxpayers who owed taxes before 2001 still owe taxes each year.

The Census Bureau ranks the states based on the percentage of each state’s population that is under 18. The District of Columbia has the smallest percentage of children of any U.S. state (ranked 51st), and also has the fewest number of people pushed off the tax rolls. The correlation is not always that exact, but in general these child-friendly tax cuts push fewer people off the rolls in states with fewer children.

Typical are Wyoming (50th lowest in the growth of non-payers, 45th lowest in percentage of children), North Dakota (48th lowest in the growth of non-payers, 47th lowest in percentage of children), and Maine (41st lowest in the growth of non-payers, 50th lowest in percentage of children). Six of the ten states with the smallest increase in non-payers also have the smallest under-18 populations.

Before 2001, almost every tax return with zero liability had adjusted gross income (AGI) under $50,000. Most were under $40,000. Since 2003, however, many tax returns in the $50,000-$75,000 income group are showing up in the non-payer category. This illustrates the dramatic decrease in the tax burdens of low-to-middle income earners that has occurred as a result of the tax cuts. Utah has seen the largest change in this income group: in 2000, about 2 percent of all returns in that income group were non-payers, while in 2004, 12 percent of those middle-income tax returns paid nothing in income taxes. In California, only 1 percent of tax returns in this bracket owed nothing in 2000, but four years later with the tax cuts fully phased in, 7 percent of the tax returns showing AGI of $50,000-$75,000 paid no income taxes to Uncle Sam.

Another factor influencing the growing number of non-payers is the increase in the “refundable portion” of the child tax credit. The opportunity to make money by filing a tax return encourages filing by individuals whose incomes are low enough that they are not required to file a return, or who had zero income withheld.

Conclusion Before the 2001 and 2003 tax cuts, non-paying returns were approximately one-fourth of all tax returns, and they were almost exclusively in the lower-income groups. Now almost one-third of all tax returns show the filer getting every dollar withheld back, or even more. And for the first time, a significant percentage of tax filers in the middle-income group are being pushed off the rolls.

Because the child tax credit was doubled from $500 to $1,000 per child in 2003 with a larger refundable portion, and because a new 10 percent taxable income bracket was enacted in 2001, the number of tax returns with zero income tax liability has risen dramatically, as detailed by a comparison of IRS tax return data in 2000 and 2004. The correlation between states with the highest percentages of non-payers and those with the highest percentages of children in the population highlights the pronounced effect of the Bush tax cuts on the growing number of non-paying families with children.

Table 1: Number of Non-Paying Tax Returns Has Grown Dramatically from 2000 to 2004

State

Income Group (AGI)

Before Recent Tax Cuts

After Recent Tax Cuts

Percentage Point Increase in Returns with Zero Tax Liability

Number of Returns With Zero Tax Liability (2000)

Percentage of All Returns with Zero Tax Liability (2000)

Number of Returns with Zero Tax Liability (2004)

Percentage of All Returns with Zero Tax Liability (2004)

United States

All Taxpayers

29,731,304

22.85%

41,942,378

31.51%

8.66%

Under $50,000

29,614,856

31.67%

41,093,085

44.53%

12.86%

$50,000 – $74,999

90,856

0.53%

727,765

4.06%

3.53%

$75,000 – $99,999

14,867

0.17%

93,058

0.93%

0.76%

$100,000 – $199,999

8,303

0.10%

25,362

0.26%

0.16%

$200,000 and above

2,422

0.09%

3,108

0.10%

0.01%

Alabama

All Taxpayers

542,252

28.48%

709,532

37.14%

8.66%

Under $50,000

541,287

36.82%

702,777

49.61%

12.79%

$50,000 – $74,999

727

0.32%

5,881

2.51%

2.19%

$75,000 – $99,999

116

0.11%

632

0.50%

0.39%

$100,000 – $199,999

87

0.11%

206

0.20%

0.09%

$200,000 and above

35

0.15%

36

0.12%

-0.02%

Alaska

All Taxpayers

44,309

13.48%

71,661

20.76%

7.28%

Under $50,000

44,106

19.10%

69,626

29.55%

10.46%

$50,000 – $74,999

168

0.38%

1,779

3.74%

3.37%

$75,000 – $99,999

21

0.08%

217

0.75%

0.67%

$100,000 – $199,999

10

0.04%

36

0.13%

0.09%

$200,000 and above

4

0.09%

3

0.05%

-0.04%

Arizona

All Taxpayers

488,403

22.69%

762,770

32.15%

9.46%

Under $50,000

486,060

31.14%

745,221

44.88%

13.74%

$50,000 – $74,999

1,841

0.65%

15,201

4.75%

4.10%

$75,000 – $99,999

308

0.22%

1,774

1.01%

0.79%

$100,000 – $199,999

145

0.11%

507

0.30%

0.19%

$200,000 and above

49

0.12%

67

0.14%

0.01%

Arkansas

All Taxpayers

322,159

28.80%

425,035

37.41%

8.61%

Under $50,000

321,687

36.04%

421,244

48.46%

12.41%

$50,000 – $74,999

336

0.26%

3,365

2.45%

2.19%

$75,000 – $99,999

80

0.16%

336

0.52%

0.36%

$100,000 – $199,999

46

0.12%

79

0.16%

0.03%

$200,000 and above

10

0.08%

11

0.07%

-0.01%

California

All Taxpayers

3,522,822

23.70%

4,941,456

32.24%

8.54%

Under $50,000

3,498,989

33.96%

4,770,763

46.58%

12.62%

$50,000 – $74,999

18,460

0.96%

141,666

6.94%

5.99%

$75,000 – $99,999

3,214

0.31%

22,465

1.90%

1.59%

$100,000 – $199,999

1,750

0.15%

5,917

0.43%

0.27%

$200,000 and above

409

0.09%

645

0.14%

0.04%

Colorado

All Taxpayers

401,465

19.15%

590,139

27.96%

8.81%

Under $50,000

399,424

27.95%

574,042

41.35%

13.40%

$50,000 – $74,999

1,627

0.55%

13,875

4.54%

3.99%

$75,000 – $99,999

218

0.14%

1,698

0.95%

0.81%

$100,000 – $199,999

145

0.09%

462

0.25%

0.16%

$200,000 and above

51

0.09%

62

0.12%

0.02%

Connecticut

All Taxpayers

268,977

16.09%

391,202

23.49%

7.40%

Under $50,000

267,117

25.40%

380,659

37.92%

12.53%

$50,000 – $74,999

1,345

0.54%

8,615

3.51%

2.97%

$75,000 – $99,999

326

0.22%

1,385

0.88%

0.66%

$100,000 – $199,999

153

0.10%

486

0.26%

0.17%

$200,000 and above

36

0.05%

57

0.08%

0.02%

Delaware

All Taxpayers

70,767

18.71%

102,595

25.93%

7.22%

Under $50,000

70,555

27.08%

100,816

38.53%

11.44%

$50,000 – $74,999

165

0.31%

1,534

2.69%

2.38%

$75,000 – $99,999

27

0.09%

179

0.52%

0.43%

$100,000 – $199,999

17

0.06%

62

0.18%

0.12%

$200,000 and above

3

0.04%

4

0.05%

0.00%

D.C.

All Taxpayers

63,164

22.62%

75,409

27.14%

4.52%

Under $50,000

62,752

30.75%

74,104

39.39%

8.65%

$50,000 – $74,999

335

1.05%

1,050

2.88%

1.82%

$75,000 – $99,999

44

0.29%

158

0.86%

0.56%

$100,000 – $199,999

28

0.15%

87

0.37%

0.22%

$200,000 and above

5

0.05%

10

0.09%

0.04%

Florida

All Taxpayers

1,839,705

24.53%

2,743,058

33.56%

9.03%

Under $50,000

1,833,894

32.39%

2,701,568

45.28%

12.89%

$50,000 – $74,999

3,991

0.45%

34,582

3.52%

3.07%

$75,000 – $99,999

925

0.23%

4,720

0.91%

0.69%

$100,000 – $199,999

625

0.16%

1,846

0.36%

0.20%

$200,000 and above

270

0.17%

342

0.17%

0.00%

Georgia

All Taxpayers

905,281

24.89%

1,339,715

35.42%

10.52%

Under $50,000

902,605

34.09%

1,317,598

49.21%

15.12%

$50,000 – $74,999

2,071

0.45%

19,158

3.97%

3.52%

$75,000 – $99,999

352

0.15%

2,277

0.85%

0.69%

$100,000 – $199,999

190

0.08%

606

0.22%

0.14%

$200,000 and above

63

0.08%

76

0.09%

0.01%

Hawaii

All Taxpayers

125,562

21.94%

173,262

28.59%

6.64%

Under $50,000

124,778

29.87%

168,679

39.77%

9.90%

$50,000 – $74,999

646

0.85%

3,986

4.79%

3.94%

$75,000 – $99,999

75

0.19%

473

1.02%

0.83%

$100,000 – $199,999

58

0.18%

111

0.27%

0.09%

$200,000 and above

5

0.06%

13

0.12%

0.06%

Idaho

All Taxpayers

139,356

24.92%

204,956

34.49%

9.57%

Under $50,000

138,632

32.72%

199,117

45.79%

13.07%

$50,000 – $74,999

628

0.85%

5,219

6.34%

5.49%

$75,000 – $99,999

60

0.20%

503

1.29%

1.09%

$100,000 – $199,999

29

0.12%

107

0.36%

0.24%

$200,000 and above

7

0.09%

10

0.12%

0.03%

Illinois

All Taxpayers

1,218,150

21.05%

1,752,365

30.41%

9.36%

Under $50,000

1,213,401

30.49%

1,714,486

44.65%

14.16%

$50,000 – $74,999

3,849

0.47%

33,213

4.03%

3.56%

$75,000 – $99,999

524

0.12%

3,667

0.77%

0.65%

$100,000 – $199,999

297

0.07%

897

0.19%

0.12%

$200,000 and above

79

0.06%

102

0.07%

0.01%

Indiana

All Taxpayers

610,116

21.50%

862,672

30.22%

8.71%

Under $50,000

608,563

29.81%

848,267

42.71%

12.91%

$50,000 – $74,999

1,268

0.30%

12,891

3.04%

2.74%

$75,000 – $99,999

162

0.08%

1,236

0.54%

0.46%

$100,000 – $199,999

102

0.07%

252

0.14%

0.07%

$200,000 and above

21

0.05%

26

0.06%

0.01%

Iowa

All Taxpayers

268,006

19.84%

375,261

28.12%

8.28%

Under $50,000

267,256

26.91%

367,255

39.26%

12.35%

$50,000 – $74,999

624

0.31%

7,252

3.54%

3.24%

$75,000 – $99,999

70

0.09%

627

0.60%

0.52%

$100,000 – $199,999

46

0.08%

118

0.16%

0.08%

$200,000 and above

10

0.06%

9

0.05%

-0.01%

Kansas

All Taxpayers

256,608

20.99%

379,430

30.86%

9.87%

Under $50,000

255,826

29.10%

372,361

43.26%

14.17%

$50,000 – $74,999

641

0.37%

6,338

3.61%

3.25%

$75,000 – $99,999

95

0.12%

573

0.61%

0.49%

$100,000 – $199,999

35

0.05%

146

0.19%

0.13%

$200,000 and above

11

0.06%

12

0.06%

0.00%

Kentucky

All Taxpayers

431,155

24.68%

571,899

32.54%

7.86%

Under $50,000

430,339

32.25%

564,959

43.91%

11.67%

$50,000 – $74,999

638

0.28%

6,168

2.58%

2.30%

$75,000 – $99,999

90

0.10%

611

0.52%

0.42%

$100,000 – $199,999

69

0.10%

142

0.16%

0.06%

$200,000 and above

19

0.09%

19

0.08%

-0.01%

Louisiana

All Taxpayers

578,458

30.86%

737,937

39.48%

8.62%

Under $50,000

577,445

39.40%

731,141

51.52%

12.12%

$50,000 – $74,999

774

0.36%

5,916

2.72%

2.37%

$75,000 – $99,999

126

0.13%

653

0.57%

0.44%

$100,000 – $199,999

82

0.11%

189

0.20%

0.09%

$200,000 and above

31

0.13%

38

0.15%

0.03%

Maine

All Taxpayers

126,714

20.92%

173,810

28.09%

7.16%

Under $50,000

126,360

27.51%

171,039

38.14%

10.62%

$50,000 – $74,999

294

0.36%

2,450

2.79%

2.43%

$75,000 – $99,999

40

0.12%

248

0.59%

0.47%

$100,000 – $199,999

16

0.07%

70

0.22%

0.16%

$200,000 and above

4

0.05%

3

0.03%

-0.02%

Maryland

All Taxpayers

478,553

18.67%

670,826

25.45%

6.78%

Under $50,000

475,256

28.21%

649,837

39.94%

11.73%

$50,000 – $74,999

2,637

0.71%

17,439

4.51%

3.80%

$75,000 – $99,999

449

0.21%

2,878

1.17%

0.96%

$100,000 – $199,999

178

0.08%

641

0.22%

0.14%

$200,000 and above

33

0.05%

31

0.04%

-0.01%

Massachusetts

All Taxpayers

495,293

15.93%

720,415

23.53%

7.61%

Under $50,000

492,651

24.31%

701,257

36.49%

12.18%

$50,000 – $74,999

2,049

0.46%

16,184

3.68%

3.22%

$75,000 – $99,999

346

0.14%

2,253

0.82%

0.68%

$100,000 – $199,999

202

0.07%

652

0.21%

0.13%

$200,000 and above

45

0.04%

69

0.06%

0.02%

Michigan

All Taxpayers

952,906

20.63%

1,370,049

30.04%

9.41%

Under $50,000

949,747

30.01%

1,342,723

43.74%

13.73%

$50,000 – $74,999

2,621

0.39%

23,961

3.61%

3.22%

$75,000 – $99,999

343

0.09%

2,713

0.69%

0.60%

$100,000 – $199,999

145

0.04%

599

0.17%

0.12%

$200,000 and above

50

0.06%

53

0.07%

0.00%

Minnesota

All Taxpayers

412,551

17.29%

607,385

25.23%

7.94%

Under $50,000

410,471

25.40%

589,351

37.77%

12.37%

$50,000 – $74,999

1,740

0.47%

15,823

4.22%

3.75%

$75,000 – $99,999

223

0.12%

1,767

0.80%

0.68%

$100,000 – $199,999

98

0.06%

399

0.20%

0.14%

$200,000 and above

19

0.04%

45

0.08%

0.04%

Mississippi

All Taxpayers

382,989

32.64%

490,921

42.10%

9.47%

Under $50,000

382,425

40.10%

486,876

53.15%

13.05%

$50,000 – $74,999

413

0.33%

3,601

2.80%

2.46%

$75,000 – $99,999

66

0.13%

331

0.53%

0.39%

$100,000 – $199,999

54

0.15%

93

0.20%

0.05%

$200,000 and above

31

0.28%

20

0.17%

-0.11%

Missouri

All Taxpayers

581,238

22.66%

804,161

31.10%

8.44%

Under $50,000

579,809

30.52%

791,730

42.84%

12.32%

$50,000 – $74,999

1,124

0.33%

10,987

3.08%

2.75%

$75,000 – $99,999

162

0.10%

1,129

0.61%

0.51%

$100,000 – $199,999

111

0.09%

274

0.18%

0.09%

$200,000 and above

32

0.08%

41

0.10%

0.02%

Montana

All Taxpayers

117,498

27.70%

153,047

34.81%

7.11%

Under $50,000

117,191

34.70%

150,679

44.81%

10.11%

$50,000 – $74,999

267

0.53%

2,106

3.79%

3.26%

$75,000 – $99,999

23

0.12%

205

0.82%

0.69%

$100,000 – $199,999

11

0.08%

55

0.32%

0.24%

$200,000 and above

6

0.13%

2

0.04%

-0.09%

Nebraska

All Taxpayers

170,847

21.12%

243,159

30.06%

8.94%

Under $50,000

170,303

28.37%

237,879

41.27%

12.90%

$50,000 – $74,999

434

0.38%

4,809

4.16%

3.77%

$75,000 – $99,999

61

0.13%

373

0.63%

0.50%

$100,000 – $199,999

37

0.10%

87

0.19%

0.09%

$200,000 and above

12

0.11%

11

0.09%

-0.02%

Nevada

All Taxpayers

188,938

19.81%

308,810

28.26%

8.46%

Under $50,000

187,863

27.17%

299,722

39.82%

12.65%

$50,000 – $74,999

771

0.57%

7,755

4.90%

4.33%

$75,000 – $99,999

151

0.25%

911

1.12%

0.87%

$100,000 – $199,999

96

0.20%

321

0.43%

0.23%

$200,000 and above

57

0.31%

101

0.39%

0.08%

New Hampshire

All Taxpayers

103,112

16.39%

151,959

23.63%

7.24%

Under $50,000

102,710

24.55%

148,016

36.04%

11.49%

$50,000 – $74,999

313

0.33%

3,438

3.51%

3.19%

$75,000 – $99,999

49

0.10%

409

0.68%

0.58%

$100,000 – $199,999

35

0.07%

88

0.15%

0.08%

$200,000 and above

5

0.03%

8

0.05%

0.02%

New Jersey

All Taxpayers

762,774

18.75%

1,091,990

26.59%

7.83%

Under $50,000

758,409

29.06%

1,063,675

42.20%

13.14%

$50,000 – $74,999

3,453

0.61%

23,686

4.17%

3.56%

$75,000 – $99,999

532

0.15%

3,696

0.98%

0.82%

$100,000 – $199,999

309

0.08%

857

0.18%

0.10%

$200,000 and above

71

0.05%

76

0.05%

0.00%

New Mexico

All Taxpayers

226,640

31.14%

305,699

36.96%

5.81%

Under $50,000

226,236

38.64%

302,287

48.38%

9.74%

$50,000 – $74,999

316

0.41%

3,025

3.11%

2.70%

$75,000 – $99,999

54

0.16%

292

0.59%

0.43%

$100,000 – $199,999

30

0.11%

85

0.19%

0.07%

$200,000 and above

4

0.07%

10

0.09%

0.02%

New York

All Taxpayers

1,969,116

22.96%

2,695,558

31.25%

8.29%

Under $50,000

1,959,696

32.33%

2,640,181

44.95%

12.62%

$50,000 – $74,999

7,248

0.65%

46,460

4.06%

3.40%

$75,000 – $99,999

1,322

0.23%

6,807

1.05%

0.82%

$100,000 – $199,999

672

0.11%

1,876

0.27%

0.15%

$200,000 and above

178

0.08%

234

0.09%

0.02%

North Carolina

All Taxpayers

846,661

23.28%

1,282,442

34.02%

10.74%

Under $50,000

844,282

31.35%

1,265,050

46.56%

15.22%

$50,000 – $74,999

1,852

0.39%

15,208

3.13%

2.74%

$75,000 – $99,999

314

0.14%

1,686

0.64%

0.50%

$100,000 – $199,999

167

0.09%

456

0.19%

0.11%

$200,000 and above

46

0.08%

42

0.06%

-0.01%

North Dakota

All Taxpayers

67,347

22.24%

87,831

28.79%

6.55%

Under $50,000

67,202

28.66%

86,483

38.74%

10.08%

$50,000 – $74,999

117

0.29%

1,232

2.78%

2.50%

$75,000 – $99,999

16

0.11%

92

0.45%

0.34%

$100,000 – $199,999

10

0.10%

20

0.15%

0.05%

$200,000 and above

2

0.07%

4

0.10%

0.04%

Ohio

All Taxpayers

1,101,725

19.76%

1,523,479

27.97%

8.21%

Under $50,000

1,098,465

26.55%

1,496,964

38.40%

11.84%

$50,000 – $74,999

2,681

0.34%

23,483

3.04%

2.70%

$75,000 – $99,999

326

0.10%

2,402

0.61%

0.51%

$100,000 – $199,999

198

0.08%

576

0.19%

0.11%

$200,000 and above

55

0.07%

54

0.07%

0.00%

Oklahoma

All Taxpayers

393,654

26.87%

526,574

35.67%

8.81%

Under $50,000

392,895

34.56%

520,025

47.01%

12.45%

$50,000 – $74,999

599

0.33%

5,862

3.11%

2.78%

$75,000 – $99,999

92

0.12%

514

0.56%

0.44%

$100,000 – $199,999

54

0.09%

162

0.23%

0.14%

$200,000 and above

14

0.08%

11

0.05%

-0.02%

Oregon

All Taxpayers

344,607

22.06%

492,984

30.73%

8.67%

Under $50,000

342,837

30.42%

481,349

42.93%

12.51%

$50,000 – $74,999

1,455

0.66%

10,216

4.46%

3.79%

$75,000 – $99,999

213

0.21%

1,097

0.91%

0.70%

$100,000 – $199,999

86

0.10%

293

0.28%

0.18%

$200,000 and above

16

0.06%

29

0.10%

0.04%

Pennsylvania

All Taxpayers

1,220,509

21.02%

1,684,203

28.98%

7.96%

Under $50,000

1,216,760

29.04%

1,655,395

41.17%

12.12%

$50,000 – $74,999

3,063

0.38%

25,312

3.06%

2.68%

$75,000 – $99,999

407

0.11%

2,731

0.61%

0.50%

$100,000 – $199,999

212

0.07%

699

0.17%

0.11%

$200,000 and above

67

0.06%

66

0.06%

-0.01%

Rhode Island

All Taxpayers

96,059

19.43%

131,612

26.31%

6.88%

Under $50,000

95,749

27.27%

129,096

38.38%

11.11%

$50,000 – $74,999

247

0.36%

2,213

3.10%

2.74%

$75,000 – $99,999

38

0.11%

241

0.58%

0.47%

$100,000 – $199,999

20

0.07%

57

0.14%

0.08%

$200,000 and above

5

0.06%

5

0.05%

-0.01%

South Carolina

All Taxpayers

467,074

25.91%

655,493

35.54%

9.62%

Under $50,000

465,951

33.60%

647,225

47.20%

13.59%

$50,000 – $74,999

872

0.40%

7,196

3.18%

2.78%

$75,000 – $99,999

164

0.17%

819

0.68%

0.51%

$100,000 – $199,999

71

0.09%

232

0.23%

0.14%

$200,000 and above

16

0.07%

21

0.08%

0.01%

South Dakota

All Taxpayers

85,159

23.98%

115,767

31.96%

7.98%

Under $50,000

84,991

30.71%

113,680

42.20%

11.48%

$50,000 – $74,999

143

0.31%

1,938

3.82%

3.51%

$75,000 – $99,999

9

0.06%

129

0.59%

0.54%

$100,000 – $199,999

12

0.10%

19

0.13%

0.02%

$200,000 and above

4

0.10%

1

0.02%

-0.08%

Tennessee

All Taxpayers

630,749

24.57%

871,917

33.45%

8.88%

Under $50,000

629,603

31.96%

862,306

44.96%

13.00%

$50,000 – $74,999

831

0.26%

8,463

2.51%

2.25%

$75,000 – $99,999

173

0.13%

867

0.52%

0.39%

$100,000 – $199,999

108

0.10%

245

0.17%

0.08%

$200,000 and above

34

0.09%

36

0.08%

-0.01%

Texas

All Taxpayers

2,441,164

26.97%

3,516,155

37.28%

10.31%

Under $50,000

2,436,466

36.26%

3,471,333

50.91%

14.65%

$50,000 – $74,999

3,475

0.33%

39,142

3.49%

3.16%

$75,000 – $99,999

705

0.13%

4,273

0.67%

0.54%

$100,000 – $199,999

397

0.07%

1,272

0.19%

0.12%

$200,000 and above

121

0.07%

135

0.07%

0.00%

Utah

All Taxpayers

230,450

24.47%

349,911

35.12%

10.65%

Under $50,000

227,277

33.06%

329,922

47.05%

13.99%

$50,000 – $74,999

2,805

2.07%

17,484

11.95%

9.87%

$75,000 – $99,999

270

0.45%

2,140

2.89%

2.44%

$100,000 – $199,999

79

0.18%

342

0.58%

0.41%

$200,000 and above

19

0.14%

23

0.14%

0.01%

Vermont

All Taxpayers

59,474

19.87%

83,061

27.12%

7.25%

Under $50,000

59,263

26.85%

81,644

37.64%

10.79%

$50,000 – $74,999

177

0.43%

1,221

2.81%

2.39%

$75,000 – $99,999

18

0.10%

160

0.71%

0.61%

$100,000 – $199,999

14

0.09%

33

0.18%

0.09%

$200,000 and above

2

0.04%

3

0.06%

0.02%

Virginia

All Taxpayers

637,123

19.09%

910,930

26.09%

7.01%

Under $50,000

634,490

28.06%

890,369

39.88%

11.81%

$50,000 – $74,999

2,063

0.44%

17,501

3.50%

3.07%

$75,000 – $99,999

335

0.13%

2,396

0.79%

0.65%

$100,000 – $199,999

183

0.07%

619

0.18%

0.11%

$200,000 and above

52

0.07%

45

0.04%

-0.02%

Washington

All Taxpayers

514,965

18.57%

759,343

26.54%

7.97%

Under $50,000

512,165

27.29%

739,654

39.60%

12.30%

$50,000 – $74,999

2,215

0.52%

16,962

3.90%

3.38%

$75,000 – $99,999

314

0.14%

2,066

0.82%

0.67%

$100,000 – $199,999

198

0.10%

598

0.25%

0.15%

$200,000 and above

73

0.12%

63

0.09%

-0.02%

West Virginia

All Taxpayers

195,111

26.02%

245,431

32.82%

6.80%

Under $50,000

194,927

32.94%

243,591

43.39%

10.45%

$50,000 – $74,999

143

0.15%

1,639

1.60%

1.45%

$75,000 – $99,999

26

0.07%

159

0.34%

0.27%

$100,000 – $199,999

15

0.07%

39

0.13%

0.06%

$200,000 and above

0

0.00%

3

0.04%

0.04%

Wisconsin

All Taxpayers

468,210

18.03%

693,563

26.46%

8.43%

Under $50,000

466,313

25.60%

677,131

38.34%

12.74%

$50,000 – $74,999

1,579

0.38%

14,616

3.54%

3.16%

$75,000 – $99,999

198

0.10%

1,471

0.64%

0.54%

$100,000 – $199,999

102

0.08%

322

0.19%

0.11%

$200,000 and above

18

0.05%

23

0.05%

0.01%

Wyoming

All Taxpayers

54,414

23.14%

69,670

28.59%

5.45%

Under $50,000

54,280

31.26%

68,367

40.61%

9.35%

$50,000 – $74,999

104

0.30%

1,158

3.06%

2.76%

$75,000 – $99,999

13

0.09%

114

0.58%

0.48%

$100,000 – $199,999

11

0.12%

28

0.21%

0.09%

$200,000 and above

6

0.17%

3

0.07%

-0.10%

Source: Internal Revenue Service and Tax Foundation calculations

Note: All figures are from the IRS Individual Income Tax Data System for all returns filed in that year. More returns were filed for these tax years than appear in the table, due to many factors such as late filing. Unfortunately, the IRS does not re-release state-by-state data to reflect more updated information about income earned in various years. For this reason, the number of nonpaying returns shown in the table nationwide for 2000 is 29.7 million, while in more updated IRS data the is given as 32.5 million. As a result, some rates in this table may differ from previously published tables. However, for most tax rates and percentages, these effects are likely to be small.

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